FirstFT: China-Hong Kong border set to open

Good morning. We start today with China and Hong Kong’s announcement that they plan to reopen their shared border on Sunday after nearly three years of coronavirus restrictions.

Crossings to and from mainland China would be limited to an estimated 60,000 a day each way, Hong Kong’s chief executive John Lee said yesterday. The visits will be the first to be exempt from quarantine on arrival since early 2020, but amount to a fraction of pre-pandemic figures.

The easing of cross-border restrictions was timed to coincide with Beijing dropping entry restrictions for overseas travellers, including scrapping PCR tests on arrival, which Chinese authorities announced late last month in an abrupt exit from the country’s zero-Covid containment policy.

“With the approval of the central government, [Hong Kong’s] path returning to normalcy is now nearly 100 per cent complete,” Lee told a press conference.

Hong Kong’s economic pillars, from the retail sector to the property market, have been battered by the pandemic. The financial hub’s gross domestic product is expected to contract 3.2 per cent in 2022.

Five more stories in the news

1. Global negative-yielding debt wiped out by Japan policy shift The global stock of negative-yielding bonds has dwindled to zero after last month’s unexpected policy shift by the Bank of Japan, which has fuelled speculation that Japan’s era of negative interest rates could soon be drawing to a close. Japan, where the BoJ’s main policy rate still stands at minus 0.1 per cent, was the last bond market to feature sub-zero yields.

2. Chinese rival to take iPhone business from Foxconn Apple is expected to enlist Chinese manufacturer Luxshare Precision to produce its premium iPhone models, breaking Foxconn’s hold on production after worker protests over Covid-19 curbs last year. Luxshare has reportedly been producing small numbers of the iPhone 14 Pro Max to compensate for lost production at Foxconn since November.

3. Kevin McCarthy loses ninth Speaker vote despite concessions Despite the last-ditch attempt by McCarthy to quell opposition and secure the votes he needs to be elected Speaker of the House, at least 20 Republicans voted against him in the latest ballot, depriving him of the simple majority needed to clinch the Speaker’s gavel. The stalemate on Capitol Hill marked the third day that the House of Representatives has been in session without selecting a Speaker.

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4. Israel’s new government proposes sweeping powers over judiciary Proposals set out by justice minister Yariv Levin will allow a simple majority in the parliament to override High Court decisions striking down laws, and give the government and its allies control over the appointment of judges. The move from the hardline government sets the stage for a bitter battle over the functioning of the Jewish state.

5. Watchdogs to turn attention to risks outside banking system Global regulators are set to sharpen their scrutiny of hedge funds, clearing houses and pension assets this year after a run of crises has shifted watchdogs’ focus towards risks outside the banking system. The disparate group, loosely defined as “non-bank financial institutions” by regulators, has been thrust into the spotlight after a series of market ructions over the past two years.

How well did you keep up with the news this week? Take our quiz.

The day ahead

Putin’s 36-hour ceasefire due to start in Ukraine The ceasefire ordered by Russian president Vladimir Putin over the Orthodox Christmas is set to begin, even though it has been rejected by Kyiv, which has described the order as hypocritical and a propaganda attempt.

Anniversary of US Capitol attack US president Joe Biden will deliver remarks at the White House to mark the second anniversary of the January 6 insurrection. In a final report released at the end of the year, a US congressional panel said former president Donald Trump was the “central cause” of last year’s attack on the US Capitol. (The Hill, FT)

Eurozone inflation figures In mainland Europe, optimism is growing that inflation has peaked. Falling inflation in member states suggests the eurozone-wide figure due today could drop lower than the forecast 9.7 per cent. Read more in our Disrupted Times newsletter.

Returning to its regular January schedule, the World Economic Forum’s 2023 Annual Meeting will bring together global leaders in Switzerland next week. Join FT Live at Davos for in-person and digital events January 16-20. View the events and register for free here.

What else we’re reading and watching

How serious is the threat of new Covid-19 variants? Yesterday the World Health Organization accused China of underrepresenting the severity of its current coronavirus outbreak. Meanwhile, at least 15 countries have introduced Covid testing for travellers from China, mostly to ensure that no dangerous new variants go undetected. But how serious is the threat of new Covid-19 variants from China? Read this explainer to find out.

🎥 Watch: How India can revolutionise women’s cricket The Indian Premier League transformed cricket from a game struggling to find a future to one of the most valuable sporting assets in the world. While top men’s players have become millionaires, women players have struggled to make ends meet. The launch of a women’s league could change the game around the world. Premium subscribers can get more on the business of sport by signing up to the Scoreboard newsletter.

The great meeting bloat deserves a purge An announcement this week from the chief operating officer at Shopify, the Canadian ecommerce platform, has enjoyed an enthusiastic response. It called for a meeting purge, prompting Emma Jacobs to ask, have pandemic working patterns raised the number of work gatherings in which nothing is achieved?

Taliban move to block women aid workers divides NGOs The Taliban’s draconian order to ban women from working at non-governmental organisations will jeopardise the ability to deliver life-saving aid to Afghanistan’s population, NGOs say. It has left donors divided between compromising, or shutting down operations in Afghanistan.

Workers: a photography special In this unique creative package, 11 photographers capture the diverse world of work — of making, caring and serving in the modern world. The collection grapples with the big question of the meaning of work while also documenting the increasingly fragile security of many workers around the world.

Take a break from the news

Singapore has long played second fiddle to Hong Kong as an art-market hub in Asia. But next week a new fair, Art SG, opens in a fresh attempt to establish a major event in Singapore and cement its rising influence in the continent’s shifting art scene. Read more in our special report on art in south-east Asia.